FTSE/Xinhua Launch First Tradable Chinese Index for International Investors

FTSE/Xinhua Index Ltd (FXI), the joint venture company set up by FTSE and Xinhua Financial Network (XFN), yesterday announced the launch of the FTSE/Xinhua China 25 Index, a capped, tradable index featuring the largest, most liquid Chinese equities available to international investors. The index is designed for use by fund managers and investment banks to create index based investment products, such as index-linked funds, derivatives and exchange traded funds, for overseas investors who want to invest in China.

The index is designed to meet regulatory requirements worldwide and subject to USA regulatory approvals, an exchange traded fund on the new index will list on the New York Stock Exchange (NYSE). Other index linked products will follow.

"As China prepares to enter the WTO, international investors demand more financial indices that adopt global standards such as the FTSE/Xinhua China 25 Index. We are confident that the individual strengths of the two partners will combine to create unique expertise on the Chinese market that has previously not existed," said Fredy Bush, Chairman of FXI and COO of Xinhua Financial Network.

"The FTSE/Xinhua China 25 combines FTSE's global index experience with XFN's knowledge of the Chinese financial markets to provide international investors with innovative opportunities to trade in Chinese stocks. Today we are launching the first FTSE/Xinhua index for China-focused investments," said Mark Makepeace, FXI Director and FTSE Chief Executive. "Further Chinese indices for domestic and overseas investors will be announced in the coming months."

The FTSE/Xinhua China 25 Index went live yesterday with dissemination of real-time valuations during local hours 9:30 am to 4:15 pm via Reuters.